Chinese Investments in Africa: Focus on Kenya

No Thumbnail Available

URL

Journal Title

Journal ISSN

Volume Title

School of Business | Bachelor's thesis
Electronic archive copy is available locally at the Harald Herlin Learning Centre. The staff of Aalto University has access to the electronic bachelor's theses by logging into Aaltodoc with their personal Aalto user ID. Read more about the availability of the bachelor's theses.

Date

2022

Department

Major/Subject

Mcode

Degree programme

(Mikkeli) Bachelor’s Program in International Business

Language

en

Pages

55

Series

Abstract

Objectives The main objectives of this study were (1) to examine how Chinese FDI in infrastructure affects the Kenyan economy and (2) to identify how much power the Kenyan government exerts over Chinese investments in infrastructure. Summary Chinese investors have a growing interest in Africa, currently financing numerous infrastructure projects all over the continent. Concerns about a Chinese debt-trap have been voiced throughout Western countries. To determine the real impact of such FDI projects on the Kenyan economy and the control the Kenyan government has over them, a Kenyan government official was interviewed. Conclusions It was revealed in this research that the Kenyan government has much more influence on implementing Chinese FDI in infrastructure than is generally thought. Accordingly, most of the issues related to Chinese infrastructure projects in Kenya actually derive from the local political environment. Chinese investors have taken advantage of the corrupt Kenyan elites, effectively circumventing local laws and regulations. Such practices have significant negative effects on the Kenyan economy. The Kenyan government must make some radical changes to its way of operating if it wishes to achieve long-term socioeconomic development.

Description

Thesis advisor

Mihailova, Irina

Keywords

China, Kenya, Africa, foreign investments, infrastructure, Sino-African relations, developing countires, debt

Other note

Citation